Correlation Between Hochschild Mining and Natural Health
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and Natural Health at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hochschild Mining and Natural Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hochschild Mining plc and Natural Health Trends, you can compare the effects of market volatilities on Hochschild Mining and Natural Health and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hochschild Mining with a short position of Natural Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Natural Health.
Diversification Opportunities for Hochschild Mining and Natural Health
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hochschild and Natural is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and Natural Health Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Health Trends and Hochschild Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hochschild Mining plc are associated (or correlated) with Natural Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Health Trends has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Natural Health go up and down completely randomly.
Pair Corralation between Hochschild Mining and Natural Health
Assuming the 90 days horizon Hochschild Mining plc is expected to under-perform the Natural Health. In addition to that, Hochschild Mining is 1.07 times more volatile than Natural Health Trends. It trades about -0.06 of its total potential returns per unit of risk. Natural Health Trends is currently generating about -0.01 per unit of volatility. If you would invest 517.00 in Natural Health Trends on September 5, 2024 and sell it today you would lose (7.00) from holding Natural Health Trends or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hochschild Mining plc vs. Natural Health Trends
Performance |
| Timeline |
| Hochschild Mining plc |
| Natural Health Trends |
Hochschild Mining and Natural Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hochschild Mining and Natural Health
The main advantage of trading using opposite Hochschild Mining and Natural Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, Natural Health can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Natural Health will offset losses from the drop in Natural Health's long position.| Hochschild Mining vs. Superior Plus Corp | Hochschild Mining vs. NMI Holdings | Hochschild Mining vs. Origin Agritech | Hochschild Mining vs. SIVERS SEMICONDUCTORS AB |
| Natural Health vs. ANGLER GAMING PLC | Natural Health vs. Hochschild Mining plc | Natural Health vs. HOCHSCHILD MINING | Natural Health vs. OURGAME INTHOLDL 00005 |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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